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What is the target cost

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Question - Twenty? Technologies, currently sells? 17" monitors for? $280. It has costs of? $220. A competitor is bringing a new? 17" monitor to market that will sell for? $230. Management believes it must lower the price to? $230 to compete in the market for? 17" monitors. Twenty Technologies believes that the new price will cause sales to increase by? 10%, even with a new competitor in the market. Twenty? Technologies' sales are currently? 5,100 monitors per year.

Required - What is the target cost if the target operating income is? 25% of? sales?

Reference no: EM133126179

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